How affiliate programs work?
You post an ad as a publisher on behalf of another website. You send people to that website. They purchase products or service that the website provide and you’re paid a commission for that.
Online Affiliate Relationship
It’s a business agreement between a merchant (an advertiser) and a publisher (a website owner who promotes the merchant’s products or service). The publisher earns a commission from the merchant for each referral(lead).
Pay per Lead, Pay per Click, and Pay per Sale
Pay per sale
-> the publisher is paid when a user actually buys products or service from the merchant’s website
Pay per lead
-> the publisher is paid when a user signs up for the merchant’s website service (newsletter, download and so on) or submits contact information.
Pay per click
-> the publisher is paid when a user clicks on the merchant’s ads. Whether the user signs up for the website or buys from the website doesn’t affect commission calculation.
In many cases, “Pay per sale” affiliate programs are the most profitable. It’s also usually more cost-effective when you consider your time and effort for affiliate programs.
Things to Consider When Choosing Affiliate Programs
1. Are the merchant’s products / service relevant to your web site?
2. Do they offer products that people actually need?
3. Is the program reliable(in the aspect of quality) and is the merchant’s website trustworthy? Try to find people who actually received payments from the merchant.
4. Is it easy to set up and use the program? Check the sign-up process, the affiliate’s control panel, the reports quality, and the tracking software.
5. What is the commission rate? 25% is reasonable. It’s totally up to the publisher’s choice, but if it’s lower than 15%, look for other affiliate programs.
6. What is the payment method and how often do they pay? (Payment schedule) Preferable payment methods are check and wire transfer.
7. What is the minimum earnings before the merchant send the payment?
Some of Popular Products / Service in Affiliate Programs
* Computer related products
* Music and Subscriptions
* Investment Service